FTC investigates cloud privacy

As cloud computing services explode in popularity, the Federal Trade Commission is taking a tough look at potential threats to consumer privacy and data security it could pose. The agency is planning at least two round table sessions to gather information from industry stakeholders about this phenomenon, and to look for ways to protect consumer privacy, according to a Computerworld article.

The FTC's interest in cloud computing comes as companies such as Google, Microsoft, Amazon, and social networking sites such as Facebook, are rushing to offer an array of cloud-hosted applications for consumers.

Government agencies also are embracing cloud computing as a way to save money and expand their ability to store data.

David Vladeck, director of the FTC's Bureau of Consumer Protection, said in a recent letter to the Federal Communications Commission that cloud computing is a good cost-saver, but has its risks.

"The ability of cloud computing services to collect and centrally store increasing amounts of consumer data, combined with the ease with which such centrally stored data may be shared with others, create a risk that larger amounts of data may be used by entities in ways not originally intended or understood by consumers," Vladeck said.

For more on the FTC and cloud computing:
- see this Computerworld article

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